CFA Practice Question

CFA Practice Question

According to Chebyshev's Theorem, what percent of the observations lie within plus and minus 1.75 standard deviations of the mean?
A. 56%
B. 95%
C. 67%
Explanation: Chebyshev's theorem applies regardless of the shape of the distribution. The minimum proportion that lie within k standard deviations of the mean is at least 1-[1/(k2)]. In this case k = 1.75. k2 = 3.0625. So we get 67%.

User Contributed Comments 4

User Comment
fordo this answer is WRONG!. the question clearly states +&- 1.75 sd not just 1.75 sd so this imples 3.50 sd total (1.75 on each side) therefore the only correct answer would be B... but this isn't totally correct either...91.84% is the answer...
shawn The answer is correct. You should use 1.75 instead of 3.5.
DAS11 Chebyshev's theorem: proportion that lies WITHIN k sd. Question asks: proportion that lies WITHIN 1.75 sd.
ontrack look at table on page 288 of Vol1 of curriculum. It clearly says for +/- k the value is 1-1/k^2
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